IRAs for Businesses

Today, retaining and rewarding employees is more important to businesses than ever. An employer-sponsored retirement plan is a great way to enhance your employee benefits program and keep your business competitive. First Citizens offers two IRA-based plans with a variety of fixed- and variable-rate FDIC insured savings options.

Simplified Employee Pension (SEP) IRA

If you are self-employed or are a small business owner, a SEP is a great way to establish a retirement plan for you and your employees.

Employers make tax-deductible contributions into a Traditional IRA in the name of each employee

Employees enjoy tax-deferred earnings

Plan is easy to establish and maintain

Savings Incentive Match Plans for Employees (SIMPLE) IRA

Designed for businesses with fewer than 100 employees, a SIMPLE IRA is similar to a 401(k) plan. Under a SIMPLE IRA plan, employees may make before-tax contributions and the employer makes matching contributions or contributes a set percentage of each employee's compensation. All contributions are subject to annual IRS limits and are made directly to an Individual Retirement Account set up for each employee.

Employees enjoy tax advantages by reducing their taxable income with before-tax contributions, and with earnings that grow tax deferred until retirement

Any employee who has earned at least $5,000 in any previous two calendar years and is expected to earn at least $5,000 in the current year is eligible to participate

Employers can usually deduct contributions to the plan as a business expense

Plan is easy to establish and maintain

A First Citizens banker can help you determine which plan suits your needs. For more information, stop by your local Branch Office or call 1-888-612-4444.